When beginning a business, there are many things we need to understand before doing so.
For example, what is your goal with your business? How are you going to generate leads?
What is the process that you will use to convert them into paying customers?
And many more…
What is a Sales Funnel?
The sales funnel is also called the sales process or the revenue funnel. It is known as the process through which a company finds its potential customers, evaluates them through various methods, and sells their products to buyers.
In simple words, it is a visual representation of the journey of particular clients (prospects) first contact with you until the purchase finished.
There is definitely something very important to realize that once we treat our clients very well, they are pleased, the clients will act as our ambassadors.
Benefits of Potential Clients:
There are many benefits of potential customers to your business. They will make marketing efforts on your behalf. Such as through word of mouth and sharing our stuff through social media. That will create more awareness, interest, and desire. Some of those people will search the website, and some of them will fill out the contact form.
Once they fill out the contact form, they become leads. Then the salespeople receive that lead and begin their work by tracking down the leads.
Now they actively follow up on that lead and that lead’s contact. Some of them show an interest in going further down the sales funnel and become leads, and some eventually buy.
Phases of Sales Funnel:
The process which carried out through the typical sales funnel is divided into 7 phases. They are,
- Awareness Phase – In this phase, the client (prospect) becomes aware of your business and solution through various mediums, such as word of mouth, social media, news, advertisements, etc.
- Interest Phase – This phase is where prospects gather information and search for facts about exciting products.
- Evaluation Phase – It is the phase before making final purchase decisions. Here prospects examine the qualities of the competitor’s solutions.
- Decision Phase – This is the phase where final decisions are made, and negotiation begins.
- Purchase Phase – This is where particular products or services are purchased.
- Reevaluation Phase – It is common in B2B sales to offer something to keep the contract and renew it. It is the phase in which the period of existing products or services will end, and customers will make decisions about whether they want to renew their contract or not.
- Repurchase Phase – In this final phase of the sales funnel, customer repurchases a particular product or services.
Benefits of Sales Funnel:
One of the most important concepts to understand when running any business is the sales funnel’s benefits. The reason is that all companies in the world, regardless of how small or large they are, have some kind of sales funnel.
It all starts with your marketing efforts. You will create awareness, interest, and desire through your marketing efforts. That will then create and make some people pay attention to what you are doing and become leads.
Now what the sales department will do with those potential customers is to try to get some of them to buy. They’re going to spend the dollars, that’s what the sales department is going to do, so it looks like a funnel.
Not all people who have an interest, in the beginning, will become paying customers through your marketing efforts.
In fact, at each stage, you may lose some people. It is very unusual that you generate interest in a hundred people, and those hundred people will buy. It doesn’t work that way.
What we want to do is to optimize the sales funnel first. So that the conversion of people who showed interest in buying become possible.
The companies are trying to optimize continuously by testing, analyzing, tracking absolutely everything through that sales funnel.
I hope this sales funnel post is helpful to you. If you want to learn more about funnels and funnel building secrets, visit my funnel hacking secret post.
Welcome to OnlineCOSMOS. I’m Subeesh live in Kerala.